Netflix's Cheaper Ad-Supported Tier Won't Include All Content

pcmag.com:

When Netflix eventually launches its ad-supported subscription tier, it won't include access to all content available on the streaming service.

As The Verge reports(Opens in a new window), Netflix co-CEO Ted Sarandos admitted as much during the company's Q2 2022 earnings interview(Opens in a new window) (the question is asked at the 18m 55s mark). Those earnings also confirmed Netflix has lost nearly a million subscribers(Opens in a new window) between April and June.

In terms of content restrictions on the ad-supported tier, the "vast majority" will be available to stream, but Sarandos said, "there are some things that don’t — that we’re in conversation about with the studios on — but if we launched the product today, the members in the ad tier would have a great experience. We will clear some additional content, but certainly not all of it, but we don’t think it’s a material holdback to the business."

Netflix CFO Spencer Neumann says having all content available is a "nice to have ... but it's not a must have." However, the restriction will surely influence the decision of some viewers as to whether to try the cheaper tier or not. The question was going to be, "will I be able to put up with the ads?" But now the question is, "will I be able to put up with the ads and what content will I miss out on?"

There's plenty of time for Netflix to negotiate with studios and potentially get all of its content available on the cheaper tier, but management is clearly trying to get people used to the idea of some being missing. The ad-supported plan isn't expected to launch until early 2023, and just as important as the amount of content made available on the service, is the price Netflix decides to charge for it.

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